HS Code:
The 'Sewed' category, often associated with sewn products like clothing, textiles, and accessories under various HS Codes (e.g., Chapters 61 and 62 for apparel), encompasses a wide range of finished textile goods that are stitched or assembled. This category includes items such as garments, home textiles, and other fabric-based products. It is a significant segment of global trade due to its essential role in daily life and fashion industries. The production is labor-intensive, often concentrated in developing countries with lower labor costs, while consumption is widespread across both developed and emerging markets.
Total Trade Volume
USD 500 billion
Data from 2022
Source
World Trade Organization (WTO) and International Trade Centre (ITC)
USD 180 billion
36% of total trade of total trade
Increasing
USD 45 billion
9% of total trade of total trade
Increasing
USD 30 billion
6% of total trade of total trade
Increasing
USD 25 billion
5% of total trade of total trade
Stable
USD 20 billion
4% of total trade of total trade
Stable
Average Rate
12%
Highest Rate
32% (applied by some developed countries on specific apparel items)
Lowest Rate
0% (under free trade agreements or for least developed countries)
Shift to sustainable and ethical production
Increased demand for eco-friendly materials and fair labor practices, pushing manufacturers to adopt green technologies and certifications like GOTS (Global Organic Textile Standard).
2021-2023
Growth of fast fashion e-commerce
Rapid increase in online sales of affordable sewn products, driving higher production in low-cost countries but also raising concerns over quality and sustainability.
2020-2022
Nearshoring in response to supply chain disruptions
Post-COVID-19, many Western countries are sourcing sewn products from closer regions (e.g., Mexico for the US, Eastern Europe for the EU) to reduce dependency on distant suppliers like China.
2021-2023
Ongoing trade disputes have led to additional tariffs on Chinese sewn products entering the US market, prompting diversification of supply chains to countries like Vietnam and Bangladesh.
Mid-2022
Increased costs for US consumers and a shift in global trade patterns with other Asian countries gaining market share.
The European Union introduced a strategy for sustainable and circular textiles, mandating stricter environmental and labor standards for sewn product imports.
March 2022
Exporters to the EU must invest in sustainable practices, potentially increasing production costs but also opening opportunities for certified producers.
Bangladesh is set to graduate from Least Developed Country (LDC) status by 2026, which may result in the loss of preferential tariff benefits in key markets like the EU.
Projected 2026
Potential reduction in competitiveness unless new trade agreements are negotiated, pushing Bangladesh to improve productivity and diversify products.